Bitcoin’s bullish momentum spread across the entire crypto market this month, with all crypto sectors seeing gains in October.
The pioneer crypto asset is up more than 20% this month, consolidated at around $34,250 at the time of drafting this report after hitting a new yearly high at $35,000 but failed to break above that level.
Growing optimism about crypto assets has prompted institutional investors to make their largest capital allocation into the digital asset market in more than a year. Bitcoin may be near an 18-month high, but its recent gains have been enough to make significant changes in investor returns.
Bitcoin’s technical prognosis appears promising. In terms of percentage terms, Glassnode data showed that in-profit Bitcoin addresses have yet to match their performance in absolute numbers but are nevertheless at 18-month highs of 81.1%.
The recent surge higher has seen the appearance of a Bullish Pennant pattern, with BTC currently attempting to break higher.
For the first time in the last six months, Kaiko claims that there has been a noticeable change in the market’s structure.
The analytics platform observed that although there had been a decrease in volatility and a slowdown in trading volume over the summer, things had changed in the last two weeks due to a rumour regarding the fictitious approval of the Bitcoin spot ETF associated with BlackRock.
The market, according to Kaiko, did not seem to care that Bitcoin’s price was declining as it reached its highest point since May 2022.
Despite an increase in trading activity, Bitcoin’s liquidity has stayed constant. Significantly, the platform reported that over the previous two weeks, at roughly $100 million, the bids and asks on order books within 1% of the mid-price have stayed unchanged.
Another possible catalyst for higher prices is the price action’s 50-/200-day bullish crossover or Golden Cross. Because of the possibility of a bullish trend continuation, some technical analysts view the crossover as a catalyst for higher prices.
Price action trends also anticipate that Bitcoin’s upward trend will likely continue as long as it remains above $32,832 in the near future. If a sell-off is confirmed, $30k would be the ultimate goal.
According to CoinShares, a digital asset manager, institutions invested $326 million in cryptocurrency investment products last week, marking the highest weekly inflow since July 2022
The increase in investor confidence, according to CoinShares, is correlated with the likelihood that the US Securities and Exchange Commission will soon approve a Bitcoin exchange-traded fund that is based on spot transactions.
According to CoinShares, 90% of institutional inflows into BTC occurred because of the expectation of a Bitcoin ETF.
The company notes that the inflows were still not historically noteworthy for the king cryptocurrency, indicating possible investor reluctance.
Though encouraging for Bitcoin, this weekly inflow only ranks as the 21st largest on record, indicating continued caution on the part of investors.
- “Nevertheless, we believe a spot-based ETF is now highly likely to materialize in the near future and will mark a significant regulatory shift for the industry” it added.
Ark Invest’s Cathie Wood also believes the price of Bitcoin can reach $1 million by 2030, with BTC ETF approval marked as the potential catalyst that can power this.
